What is a CFP®?

Hello, my name is Scott Johnson. Thank you again for tuning in to the Financial Success Academy.

If you've ever searched for a financial advisor, chances are you've come across the letters CFP®. But what do those letters actually mean? And more importantly, why should you care? CFP® stands for CERTIFIED FINANCIAL PLANNER®, and it's widely considered the gold standard in the financial planning profession. Not every financial advisor is a CFP® professional, so it's important to understand the difference between somebody who is certified and someone who is not.

The CFP® marks ensure an advisor is trained to consider your full financial picture when recommending any investment solutions, and a CFP® professional is legally required to always act in your best interest. But let's take a closer look at why that is. What do these letters really represent? What does it mean when they're missing? Many of the licenses that allow someone to call themselves a financial advisor—like the Series 7, the Series 63, or even the Series 65—are really just regulatory requirements, not professional credentials. They're designed to make sure someone is legally allowed to operate, not to teach them how to build a comprehensive financial plan, evaluate financial trade-offs, or guide you through the complexities of your financial life. And all that's required for these licenses is to pass a test and work for a sponsoring firm.

In contrast, to become a CFP® professional, an advisor has to meet a strict set of requirements. This includes completing a CFP® Board-approved education program, passing a comprehensive six-hour exam that covers disciplines like retirement planning, investment management, estate planning, tax strategy, and financial psychology; logging thousands of hours of professional experience; and committing to a fiduciary oath and the highest level of ethical standards in the industry. This is a massive difference in financial education, training, experience, and ethical standards compared to the average financial advisor who is not a CFP®.

CFP® professionals are trained to look at your full financial picture—your retirement planning, taxes, insurance, estate planning, equity compensation, and business strategies—and to bring all those moving parts into one cohesive plan. When someone holds this designation, you know that they have already had thousands of hours of experience working with clients and actually doing financial planning.

Think of the Series 65 as the driver’s license—it lets you legally get behind the wheel and give investment advice. All advisors providing advice for a fee must hold this license, including every advisor at Decision Point Financial. Now think of the CFP® designation as more like a professional pilot’s license—it proves you've undergone advanced training, passed a much harder test, and committed to a higher standard.

At Decision Point Financial, we believe in the CFP® designation because we've seen the difference that it makes. We've seen the quality of thinking, the level of detail, and the higher bar CFP® professionals hold themselves to. And frankly, we don't think clients should settle for anything less. That's why we place a strong emphasis on all of our advisors either having or working towards the CERTIFIED FINANCIAL PLANNER® designation. 

In short, the letters matter. They don't guarantee perfection, but they do reflect commitment—to the craft, to the process, and most importantly, to you.

Thanks for watching, and as always, stay safe out there.